BigBasket has announced the acquisition of DailyNinja at a time when grocery and micro delivery startups are facing challenges in executing deliveries due to lockdown in most parts of the country over Covid-19.
Both firms have been busy finalising the acquisition for several months. While neither has disclosed the size of the deal but according to Entrackr’s sources, it would be in the range of $20 million.
As part of the deal, DailyNinja’s 280 employees will join BigBasket.
DailyNinja is the first major acquisition by BigBasket in the micro delivery or subscription commerce space. Last year, the Alibaba-backed firm had taken over Pune-based RainCan and Morning Cart. However, they were more of an acquihire than an acquisition.
This acquisition will help BigBasket’s micro delivery arm bbdaily to consolidate its leadership position in the subscription commerce space in Bengaluru. It will now have access to DailyNinja’s network of 2,000 milkman partners spread across the country.
The deal has been announced at a time when micro-delivery companies have been finding it tough to convince venture capitalists for a large round. Even the poster boy of the subscription commerce space – Milkbasket – has not been able to score a large round.
Despite sound unit economics and a sticky business model, investors have shown apathy to this segment. Since SoftBank, Alibaba and Naspers had placed their bets on online grocery, VCs are wary of funding them. The Chinese behemoth has BigBasket in its portfolio while SoftBank has Grofers.
Naspers and DST-backed Swiggy, which expanded into grocery via Swiggy Stores, also acquired Suprdaily to enter the subscription commerce space.
Now with the consolidation of DailyNinja and BigBasket, the micro delivery space is left with only one independent player – Milkbasket. Last year, Omnivore-backed Doodhwala had shut operations and transferred its subscribers to FreshToHome.